Keppel reverses out of the red in 4Q with earnings of $135 mil on absence of graft-linked penalty and costs
SINGAPORE (Jan 24): Keppel Corporation reported earnings of $135 million for 4Q18 ended Dec 2018, compared to a net loss of $492 million for 4Q17.
Excluding the one-off financial penalty and related costs of $619 million arising from Keppel O&M’s global resolution with criminal authorities in 4Q17, earnings for 4Q18 of $135 million was 6% above the earnings of $127 million for 4Q17.
FY18 earnings came in at $944 million, nearly five times higher compared to the earnings of $196 million for FY17. Excluding the one-off financial penalty and related costs, FY18 earnings of $944 million would have been just 16% higher year-on-year.
Group revenue for 4Q18 came in at $1.68 billion, 9% above that of 4Q17.
Revenue from the offshore & marine division increased by $30 million to $520 million due mainly to higher revenue recognition from ongoing projects.
Revenue from the property division decreased by $59 million to $373 million due mainly to lower revenue from Singapore, partly offset by higher revenue from Vietnam and China.
Revenue from the infrastructure division increased by $151 million to $744 million due mainly to increased sales in the power and gas businesses as well as higher progressive revenue recognition from the Keppel Marina East Desalination Plant project.
In 4Q18, the offshore & marine division suffered a pre-tax loss of $97 million. Pre-tax profit of the property division of $215 million was 40% lower than 4Q17 due mainly to lower fair value gains on investment properties. Investments division’s pre-tax loss was $4 million.
In its outlook, Keppel says the offshore & marine division will continue to focus on delivering its projects well, exploring new markets and opportunities, investing in R&D and building new capabilities. Net order book, excluding the Sete rigs, stood at $4.3 billion as at end Dec 2018.
In 4Q18, the property division sold about 4,440 homes in 2018, comprising about 160 in Singapore, 2,240 in China, 910 in Vietnam, 350 in Indonesia and 780 in India.
The division says it will remain focused on strengthening its presence in its key markets such as Singapore, China and Vietnam and scaling up in other markets such as Indonesia and India, while seeking opportunities to unlock value and recycle capital.
Keppel has proposed a final cash dividend of 15.0 cents/share which will bring total cash distribution to 30.0 cents/share for FY18.
Shares in Keppel closed 2 cents higher at $6.13 on Thursday.
